ANNUAL REPORT 2011 A.S. CRÉATION TAPETEN AG

start-up losses incurred in Russia will also weigh
on the company’s earnings position in the fiscal
year 2012. To ensure that production can start
as planned in September 2012, the company
will begin to hire staff and develop the collections
in the course of 2012. Also, the distribution
structures required to market the products
will continue to be built up as planned. In spite
of these adverse impacts on the bottom line,
the Managing Board expects the Group’s net
profit to increase on the previous year and to
reach between € 6.0 million and € 7.0 million.
With most of the start-up losses incurred in
2012 and 2013 being the first full fiscal year of
operation of the Russian wallpaper production,
the Managing Board expects sales revenues to
rise sharply to a new high and earnings to clearly
exceed the level of 2012 in 2013.
The implementation of these plans will be a
major challenge for A.S. Création. The Managing
Board nevertheless sees the company in a good
position to master this challenge:
• Both Divisions are profitable and have
demonstrated their ability to adapt to
changing conditions.
• The underlying business model, which
focuses on wallpapers and furnishing
fabrics, has proven its worth also in the
years of the financial and economic crisis,
meaning that no structural weaknesses
can be identified at this time.
• The financial situation of A.S. Création is
sound and robust, which means that no
liquidity bottlenecks are expected.
Statement pursuant to section 315 para. 1
sentence 6 of the German Commercial Code
(Handelsgesetzbuch HGB)
To the best of our knowledge, and in accordance
with the applicable reporting principles
for financial reporting, the consolidated financial
statements give a true and fair view of the
assets, liabilities, financial position and profit or
loss of the Group, and the management report
of the Group includes a fair review of the development
and performance of the business and the
position of the Group, together with a description
of the principal opportunities and risks associated
with the expected development of the Group
for the remaining months of the financial year.
Gummersbach, February 29, 2012
A.S. Création Tapeten AG
The Managing Board
Kämper Hallwig Krämer
GROUP MANAGEMENT REPORT
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